Kelowna-based Rental Property Brokerage No Longer Authorized to Operate Following Urgent Order to Suspend Licence of Managing Broker

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BCFSA has suspended the licence of Tao (Terry) Guo after determining he abandoned his duties to oversee the operations of Menethil Properties Ltd. as managing broker. Without a managing broker in place, Menethil Properties is not authorized to operate.

BC Financial Services Authority (“BCFSA”) has suspended the licence of Tao (Terry) Guo after an investigation into Menethil Properties Ltd. (“Menethil”) found that Guo had abandoned his duties as managing broker. BCFSA’s investigation continues, and Menethil is not permitted to operate until such a time that a new managing broker is licensed in relation to the brokerage.

Menethil provides rental property management services for approximately 100 properties in Kelowna. Landlord clients of Menethil, and tenants who are renting a home through a Menethil property manager, are encouraged to review BCFSA’s consumer alert on this matter to understand potential impacts to them.

The decision to suspend Guo’s licence was made after BCFSA discovered that Guo, Menethil’s managing broker, had moved overseas and was delegating his managing broker responsibilities to Menethil’s director, Yu (David) Song, who was not licensed to serve as a managing broker. The Real Estate Services Act (“RESA”) requires all real estate brokerages to have a licensed managing broker in place to supervise the brokerage. This requirement serves as an important mechanism for protecting consumers. Guo’s failure to supervise the brokerage was discovered during BCFSA’s ongoing investigation into Menethil’s accounting and payments practices.

Song had previously been licensed as Menethil’s managing broker, however, his managing broker licence was cancelled in September 2023. BCFSA found Song committed professional misconduct when he failed to file financial statements, properly maintain financial records, and did not respond to BCFSA’s requests for information as required under the Real Estate Services Rules (the “Rules”). While Song’s managing broker licence was cancelled and he was required to pay a $25,000 penalty, he was allowed to continue operating with a representative broker licence and he maintained his role as director at Menethil.

There are no immediate impacts to tenancy agreements as a result of this Urgent Order although Menethil is no longer authorized to operate. Tenants are protected by the Residential Tenancy Act and are advised to continue paying their rent according to the terms of their tenancy agreement.

“BCFSA sought an urgent order to suspend Guo’s licence due to its concerns for the interests of consumers. Having a licensed and qualified managing broker in place to provide the necessary supervision of a real estate brokerage is an important mechanism for protecting consumers,” said Jon Vandall, BCFSA’s Senior Vice President, Compliance and Enforcement. “Evidence that Guo no longer had care and control of the brokerage created an urgent need for BCFSA to take action to protect the public.”

Landlords and tenants with concerns about their obligations under their tenancy agreements, including rent payment, returning security deposits, and dispute resolution, can find information on the Residential Tenancy Branch website.

Media Contact:
Kate Bilney
Communications Manager, media@bcfsa.ca
Visit: www.bcfsa.ca